What percentage of mortgages issued should require only a 10% deposit?

chucky

Graham_Devon wrote: »

Average mortgage costs are NOT the same as what you are talking about here, which are more expensive high LTV mortgages.

You do realise that mortgage payments aren't affected by inflation but rents are affected by inflation?

Graham_Devon

chucky wrote: »

You do realise that mortgage payments aren't affected by inflation but rents are affected by inflation?

Mortgage payments are affected by inflation.

Think about it.

The nominal debt isn't.

chucky

Graham_Devon wrote: »

Mortgage payments are affected by inflation.

Think about it.

The nominal debt isn't.

Oh dear, Graham does it yet again.

He thinks a fixed rate mortgage (obviously fixed monthly payments) is affected by inflation.

You don't help yourself much do you.

Graham_Devon

chucky wrote: »

Oh dear, Graham does it yet again.

He thinks a fixed rate mortgage (obviously fixed monthly payments) is affected by inflation.

You don't help yourself much do you.

1. You never said fixed rate, but it's good that you were able to think about it.

2. There is no 25 year fixed rate mortgage.

You're too easy chucky, seemingly always a step behind, having to catch up while thinking it's you running rings.

chucky

Graham_Devon wrote: »

1. You never said fixed rate, but it's good that you were able to think about it.

2. There is no 25 year fixed rate mortgage.

You're too easy chucky, seemingly always a step behind, having to catch up while thinking it's you running rings.

Me catch up, you've lost it. Don't even try it, you're not very bright.

Explain how a mortgage is affected by inflation or are you going to do your usual routine of muddling the thread claiming you didn't say something that you blatantly said 3 posts earlier.

ps. You can fix your mortgage every time the fix ends over 25 years or didn't you know that.

Graham_Devon

chucky wrote: »

Me catch up, you've lost it, don't even try it, you're not very bright.

Explain how a mortgage is affected by inflation or are you going to do your usual routine of muddling the thread claiming you didn't say something that you blatantly said 3 posts earlier.

ps. You can fix your mortgage every time it ends over 25 years or didn't you know that.

OK, mortgages are affected by inflation as inflation can be used to change interest rates which can affect the mortgage rate of your product.

Therefore, anyone not on a fix can find their interest rate move, and therefore their monthly payment move up and down.

As for remortgaging, yes, of course people can remortgage and fix again, but they will only be able to fix at the rates offered at the time. So, lets say they fix for 5 years at 5%. In 2018, they may find the only fix available at that point is at 7%.

Therefore, even though they have a new fix, their monthly payment will increase or indeed decrease dependent on the variables at the time.

Obviously there are many many factors that you could throw to the table, such as "what if they make a lumpsum payment" blah blah. But that would go on all day long. Point is, mortgage payments can and are affected by inflation.

Might be wise top drop this line now.

Percy1983

HAMISH_MCTAVISH wrote: »

It doesn't matter what you call it, the end result is most people cannot buy.

And it doesn't matter how many of them save up the deposit, or get rid of debt.

They'll still be unable to buy, as the banks will have to move the goalposts, to continue rationing limited funding.

Only with an increase in the availability of mortgage funds, will more people be able to buy.

The thing is the current 'rationing' as you like to call it is letting a steady flow of people through who are all reasonably safe bets for the banks, its letting enough people through to match the shortage of housing and slow building.

As soon as there is more stock loosen criteria a little to up the flow to match the increases in stocks.

Its simple to most financially viable get the houses, when there is more house still the most financially viable get them just the bar is a little lower so more can get in sooner.

My point still stands it is possible for anybody to clear debts and raise a deposit, it just takes time, that time is causing more of a slow release of people as they slowly reach there goals.

As for the rent vs mortgage argument, my brother rents a house which is a similar size to my house, his rent is £90 less a month than my mortgage and he doesn't have to pay for maintenance (I did have to hand out a couple of hundred for roof repairs this winter).

Could my brother support my mortgage, probably not, he is always borrowing money off me as it is.

chucky

Graham_Devon wrote: »

OK, mortgages are affected by inflation as inflation can be used to change interest rates which can affect the mortgage rate of your product.

Inflation doesn't have to be targeted using interest rates, you do realise governments can control the money supply and exchange rates too. This is your problem,you're not very clever anyway and think you know more than you actually know and you won't listen to anyone.

I thought you would have learned by now but you're learning skills obviously aren't very good. Seriously, have you thought about professional help for this?

Might be wise top drop this line now.

mcc100

HAMISH_MCTAVISH wrote: »

The vast majority of renters pay a similar or greater amount in rent as they would for a full repayment mortgage.

Source for this statement ?

Graham_Devon

Some self respect wouldn't harm chucky.

You are no longer making me look stupid. You are not even reading my words. I stated "inflation can be used to change interest rates".

As I said, always a step behind....